Hard to say without seeing the rest of the room. Do you need the TV here or are there other good places for it?

Sometimes the best solution for an awkward space is to leave it empty, and draw the eye to other more attractive parts of the room.

If you have another place for the TV, how about a plant?

Would need to see the fireplace, TV, all four walls and other furniture to help you decide what is the best approach to the corner issue. Please comment and add more pix taking from the opposite side of the room from the subject matter.

I agree that your TV looks a little too big for that space. I think the space could be easily used by placing a tall or hanging plant, a narrow bookcase, maybe a cute chair with wall hangings behind it.

My parents' home had an extended hearth. When they replaced the flooring in the room, they had a stone mason remove it so that the hearth was only the width of the fireplace. Then they put the grandfather clock in the corner.

Most likely it's too dark for a plant. You wouldn't put a chair up on that raised section.

I would probably just decorate the longer wall with art and not put anything on top of the stone. Hard to know without seeing what is to the left of it in the room.

That looks like it was initially designed for seating! I'd have a cushion custom-made and then add in some throw pillows. Add art, maybe a wall sconce to make it into a real reading nook. I do feel like the chopped-up paint isn't working for you, but without seeing how the rest of the room is painted it's hard to say how to fix it.